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HomeMy Public PortalAboutLTC 026-2016 Legislative Session Week 3 Report - January 25-29, 2016BAL HARBOUR V I L L A G E - OFFICE OF THE VILLAGE MANAGER LETTER TO COUNCIL NO. 026-2016 To: Mayor Martin Packer and Members of the Village Council From: Jorge M. Gonzalez, Village Manager Date: February 5, 2016 Subject: Legislative Session Week 3 Report - January 25 - 29, 2016 The purpose of this Letter to Council (LTC) is to transmit the attached Legislative Session Week 3 Report provided by Ron L. Book. If you have any questions or need any additional information, please feel free to contact me. Rondld L. Book, P. R low OFFIfES PRORM0001 P KIPiIOP 2016 Session Week 3 Report At the end of week 3, the House and Senate proposed General Appropriations bills were released, with the Senate budget totaling just over $80 billion, and the House budget just under. Once the two chambers have passed their versions of the budget they will enter into budget conference negotiations over the next few weeks, ending likely during the last week of the Legislative Session. Major funding differences at this point in session include natural resources funding, economic development incentives, school construction, higher education funding, and the court system funding. Economic Development and Film Incentives: The Senate Commerce and Tourism Committee this week, passed an omnibus economic development bill, SB 1646 by Senator Detert, that restructures the state's economic incentive and development programs. The next stop for this bill is the Senate Appropriations committee on Transportation and Economic Development, which includes funding for this program, in its budget proposal released this week. The budget proposal also includes $6 million to be allocated to Visit Florida, to help advertise movies that showcase Florida as a destination. Senator Detert and Senator Thompson expressed concerns with this proposal to Chairman Latvala, noting that Visit Florida was not the preferred location for funding of this sort, and that the appropriate area for the entertainment film industry funding be a separate item under Enterprise Florida. This remains to be finalized as the legislature goes through the budget process. The Senate Transportation and Economic Development subcommittee budget proposal does contain the Governor's Enterprise Fund priority, which is strongly supported by Senator Latvala, the chairman of this subcommittee, and who is slated to become the full Appropriations committee chairman next Session. The Governor has requested $250 million for this fund. In the Senate proposal, to qualify for funding from the Enterprise Fund, a project will have to create at least 10 jobs and receive 20 percent of its support from local contributions, in addition to providing a 3 to 1 return on investment as calculated by state economists. The proposal limits the duration of incentive contracts for all programs to 10 years, and mandates that the final incentive deals approved by the Governor include the same requirements and metrics as the project descriptions provided to the Legislature. Lastly, $100 million of this fund would be allocated to this fund once the settlement money is awarded to Florida from the BP oil spill case. Conversely, the future of this economic incentives package in the House, is uncertain at this time, with House leadership philosophically opposed to incentives. Local Government Water Projects: While both the House and Senate Agriculture and Natural Resources Appropriations subcommittee budgets have been released, no funding for water projects was included in either House or Senate preliminary proposal. Water project funding allocations are not expected until the end of the budget conference process. Should you need further information on these or other issues, please call or email us and we will provide that information. Harbour Centre 118851 N.E. 29th Ave., Ste.1010 I Aventura, Fl, 33180 Phone: 305.935.1866 I Fax: 305.935.9737 104 West Jefferson Street I Tallahassee, FL 32301 Phone: 850.224.34271 Fax 850.224.3361 Gaming Compact: During week 3, the Senate Regulated Industries committee held a second workshop to hear a presentation by Amy Baker, the state's economist, and is the director of the State's Economic and Demographic Research. Gaming entities and members of the public where given the opportunity to speak on the Compact. In Ms. Baker's presentation, and in her answers to members' questions during the committee meeting, one of the more important points she stressed, was that with this Compact as written, the "cannibalization" of the state's many existing gaming businesses, is likely. This is important to note because the existing gaming entities have been working to include various other issues in the Compact, such as tax parity, slots parity, and decoupling. At this stage, the inclusion of these issues is tied to members' votes, and without them, the Compact could be in jeopardy. The Legislature must ratify the Compact in order for it to become finalized. The Senate has not indicated its plan to meet in the next few weeks to take up the compact to authorize the Governor's agreement, nor has the House Regulatory Affairs committee. We will continue to update you on this important issue. Tax Cut Package: The preliminary Senate budget proposal does not include the Governor's top priority this year, of $1 billion in tax cuts. However this week in the House, Representative Gaetz, Chair of the Finance and Tax committee, held a workshop to review the House tax cut package proposal, which does include almost $1 billion in cuts. It includes cuts to 33 different taxes, according to the House, and would amount to approximately $989 million. What the House cut package does not include is the Governor's proposal to eliminate corporate income taxes on manufacturers and retail businesses. This cut would be just under $400 million this fiscal year and $770 million annually, beginning in the next fiscal year. The House plan would include four sales tax holidays: A 10-day reduction for back to school shopping in August; a reduction on taxes for hunting and fishing gear, including firearms, ammunition and fishing poles for one day in August; a reduction to encourage people to shop at small businesses on the Saturday after Thanksgiving; and a cut in sales taxes on technology, including computers, tablets, and cell phones, which would amount to $116 million in sales tax reductions next year. The House plan also includes reductions in taxes on commercial leases and continues a sales tax exemption on manufacturing equipment. The atmosphere in the Senate is entirely different, as Chairman Lee has used strong language questioning the Governor's and House tax cut plans. He has made it known that he is wary of long-term tax reductions that would cut too far into the state's budget, and could have strong implications if the economy should take a stronger turn downward. We reported earlier this month that the state revenue estimating conference released a budget projection that lowered expected state funding by $400 million. Transportation Network Companies (Uber, Lyft ride sharing services): HB 509 (Gaetz, M.) passed the full House this week, with a vote of 108 — 10. The bill as passed, would take effect July 1, 2016, and accomplish the following: • Preempts to the state the regulation of Transportation Network Companies (TNCs) and creates a regulatory framework for the operation of TNCs. • Prohibits local governments from imposing taxes or licenses on TNCs relating to the provision of TNC service. • Provides that airports may charge an annual fee to TNCs of up to $5,000. • Defines "transportation network company" as an entity granted a permit under s. 316.680, F.S., to operate in this state using a digital network or software application service to connect riders to TNC service provided by drivers. A TNC is not deemed to own, control, operate, or mange the vehicles used by drivers; is not deemed to control or mange drivers; and is not a taxicab association or for -hire vehicle owner. A TNC does not include an individual, corporation, partnership, sole proprietorship, or other entity arranging nonemergency medical transportation for individuals qualifying for Medicaid or Medicare pursuant to a contract with the state or a managed care organization. The bill also provides other definitions related to TNCs. • Provides that a TNC is not a common carrier and does not provide taxi or for -hire vehicle service. -2- " Provides that a TNC driver is not required to register his or her vehicle as a commercial motor vehicle or for -hire vehicle. " Provides that a person must obtain an annual permit from the Department of Highway Safety and Motor Vehicles (DHSMV) to operate as a TNC in the amount of $5,000, paid to DHSMV. " Requires TNCs charging fares to disclose the fare calculation, to provide riders with applicable rates being charged, and an option to receive an estimated fare and requires an electronic receipt to be provided. " Requires the identification of TNC vehicles and drivers by license plate and picture of the driver. " Provides minimum TNC and driver insurance requirements and requires insurance related disclosures. " Provides that TNC drivers are independent contractors if certain conditions are met and TNCs are not required to provide workers' compensation coverage for independent contractors. " Requires TNCs to have a zero tolerance policy for illegal drug or alcohol use. " Provides minimum requirements for TNC drivers, including a criminal background check and a driving history report. " Prohibits TNC drivers from accepting street hails or cash payments. " Prohibits TNCs from discriminating against drivers and requires them to develop policies on nondiscrimination and accessibility. " Requires motor vehicle crash reports to indicate if a driver is engaged in TNC service and provides penalties for providing false information. HB 509: http://Myfloridahouse.gov/Sections/Documents/loaddoe.aspx?FileName= h0509el.docx&DocumentTwe=Bill&Bi 11Number=0509&Session=2016 Transportation Network Companies: HB 1118, (Simmons), is the Senate TNC bill that at this time, only addresses insurance required of the company and drivers, it would take effect July 1, 2017, and accomplish the following: " Specifies minimum insurance requirements for TNCs, and requires transportation network companies or drivers to maintain primary automobile liability insurance of at least $125,000 for death and bodily injury per person, $250,000 for death and bodily injury per incident, and $50,000 for property damage. The bill creates two time periods during which the insurance is required. The first time period is during the time when a driver is logged on to the transportation network company's digital network but not providing a prearranged ride. The second time period is during a prearranged ride. " Requires TNC drivers to maintain liability insurance of at least $25,000 for death and bodily injury per person, $50,000 for death and bodily injury per incident, and $10,000 for property damage. Such coverage would apply at all times other than during a prearranged ride or when the driver is logged on to the TNC digital network but not providing a prearranged ride. The bill also requires that coverage meeting the requirements of the Florida Motor Vehicle No -Fault Law be maintained at all times. " Preempts any local ordinances imposing insurance requirements on transportation network companies. SB 1118: hllp://www.flsenate.gov/Session/Bill/2016/1118/BillText/cl/PDF Public Works Projects: SB 598 (Brandes) would prohibit the state and political subdivisions that contract for the construction, maintenance, repair, or improvement of public works from imposing restrictive conditions on contractors, subcontractors, or material suppliers or carriers; prohibits the state and political subdivisions from restricting qualified bidders from submitting bids. This bill was heard in the Governmental Oversight and Accountability committee and failed, 2  3. The House companion, HB 181, (Van Zant, Tobia), which passed all of its committees and was scheduled to be heard by the full House, was temporarily postponed, that same day. -3- Public Corruption bills: HB 7071 (Formerly PCB RCEC5) passed the full House this week, 118 — 0, and would do away with two issues in proving bribery, bid rigging and fraud. This legislation would eliminate two hurdles required in prosecuting bribery, bid rigging and fraud. The bill's provisions include recommendations from a statewide grand jury on public corruption and is backed by the Florida USA Today Network. This major piece of legislation is quite comprehensive, and it is uncertain how it would be managed should it become law. The bill expands who can be subject to criminal sanction, classifies private contractors as "public servants" for the purpose of fighting public corruption, and shifts the burden of proof from the prosecution to defense. Current law stipulates that prosecutors have to prove corrupt intent, the bill will require defendants who are accused of knowingly and willingly engaged in illegal conduct to prove otherwise. Also included is a provision that expands who is determined to be a public servant and therefore who could be prosecuted for these offenses, including bid tampering. HB 7071: hllp://myfloridahouse.gov/Sections/Documents/loaddoc.aspx?FileName= h7071 docx&DocurnentType=Bill&Bi 11Number=7071 &Session=2016 The companion public corruption bill, SB 582 by Senator Gaetz, will be amended and heard by the Senate Criminal Justice committee, on 2/1/16. SB 582: http://www.flsenate.gov/Session/Bill/2016/0582/BillText/Filed/PDF SB 686 (Gaetz, D) a third version of the public corruption bill, will be heard by the Senate Governmental Oversight and Accountability, on 2/01/16. SB 686: http://www.flsenate.gov/Session/Bill/2016/0686BillText/cl/PDF Election of Officers: HJR 165 (Artiles) proposes to amend the State Constitution to require that the offices of sheriff, property appraiser, supervisor of elections, tax collector, and clerk of the circuit court, would be elected offices, and would carry four year terms of office. The joint resolution was amended in its first committee to include tax collector, and to specifically clarify that the proposed constitutional amendment is applicable to all counties, including Miami -Dade County. Lastly, the HJR was amended to delay implementation until January 8, 2019, so that the affected counties would have time to amend their charters and hold elections. Being that this legislation amends the state constitution, each house of the Legislature must pass this joint resolution by a three -fifths vote in order for the proposal to be placed on the ballot. CS/FUR 165 provides for the proposed constitutional amendment to be submitted to the electors of Florida for approval or rejection at the next general election or at an earlier special election specifically authorized for this measure. Any proposed constitutional amendment in Florida must pass statewide, by a vote of 60 percent or more. This bill passed the Judiciary Committee; 16 — 2, and passed the Local and Federal Affairs Committee, 12 — 4. CS/HJR 165: hto://www.ipyfloridahouse.gov/Sections/Documents/loaddoc.aspx?FileName= h0165cl.docx&DocumentType=Bi 11&BillNumber--0165&Session=2016 The Senate companion, SB 648 (Hutson) was temporarily postponed in committee. We continue to work with members to strongly oppose this bill, and subsequently the Senate bill has not had a hearing to date. SB 648: http://www.flsenate.gov/SessionBill/2016/0648/BillText/cl/PDF Traffic Infraction Detectors (Red Light Cameras): SB 168 (Brandes) and HB 4027 (Artiles), would repeal the use of red light cameras. HB 4027 passed the Economic Affairs Committee, 13 — 3, on 1/21/16. HB 4027: http://www.flsenate.gov/Session/Bill/2016/4027/BillText/Filed/PDF SB 168 has not been heard to date. SB 168: htti)://www.flsenate.2ov/Session/Bill/2016/0168/BillText/Filed/PDF Drones: SB 642 (Diaz de la Portilla) and HB 459 (Fitzenhagen) these bills provide for liability for injury to a person or property damage in this state for the negligent operation of a drone. HB 459 has not been heard to date. SB 642 passed the Rules committee, 12 — 1. SB 642: http://www.fisenate.gov/Session/Bill/2016/0642/BillText/el/PDF The House companion, HB 459 (Fitzenhagen) has not been heard to date. HB 459: http://myfloridahouse.gov/Sections/Documents/loaddoc.aspx?FileName= h0459 docx&DocumentType=Bill&Bi 11Number=0459&Session=2016 Public Procurement Practices: SB 124 (Evers) and HB 95 (Steube) would require a private entity that submits an unsolicited proposal to pay an initial application fee and additional amounts if the fee does not cover certain costs. It deletes provisions relating to notice to affected local jurisdictions by which the responsible public entity would no longer be required to notify each affected local jurisdiction when considering a proposal for a qualifying project. Also, this bill would increase the dollar threshold for a contract amount of a project for which a person, the state, or a political subdivision is prohibited from refusing a surety bond issued by a surety company, and deletes provisions creating the Partnership for Public Facilities and Infrastructure Act Guidelines Task Force. HB 95 passed the full Appropriations Committee, 24 — 1. SB 124 will be heard in the Governmental Oversight and Accountability committee on 2/01. Body Cameras/Law Enforcement Officers: HB 93 (Jones) and SB 418 (Smith) Requires law enforcement agencies that permit law enforcement officers to wear body cameras, to develop policies and procedures governing the proper use, maintenance, and storage of body cameras and recorded data. The policies would be required to include the following: • Guidelines for the proper use, maintenance, and storage of body cameras; • Any limitations on which law enforcement officers are permitted to wear body cameras; • Any limitations on law enforcement -related encounters in which law enforcement officers are permitted to wear body cameras; and • Guidelines for the proper storage, retention, and release of audio and video data recorded by body cameras. • Training for use and storage of camera, and use and maintenance of data. HB 93 passed the Criminal Justice subcommittee, 13 — 0, and the Appropriations committee, 18 — 0. HB 93 was not heard this week. -5- HB 93: http://www.Mfloridahouse.gov/Sections/Documents/loaddoc.aspx?FileName= h0093 docx&DocumentType=B ill&BillNumbei-0093 &Session=2016 SB 418 will be heard in the Criminal Justice committee, 2/01/16. SB 418: http://www.flsenate.gov/Session/Bill/2016/0418BillText/Filed/PDF ➢ The following are bills filed that affect local governments that our firm is monitoring. None of the following bills have been heard to date: Drone Use by Sexual Predators: SB 510 (Hukill) and HB 1301 (Metz) would create a third degree felony for convicted sexual predators who use or operate a drone to view or record an image of a minor. Neither bill has been heard to date. Texting while driving: SB 328 (Altman) and HB 537 (Perry) would authorize law enforcement officers to stop motor vehicles and issue citations as a primary offense to people who are texting and driving. Currently texting while driving is a secondary offense. Neither bill has been heard to date. Texting while driving in a school zone: HB 25 (Stark) and SB 246 (Sachs) is a different approach, which would only make texting while driving a primary offense while in a school zone or in a school crossing. Neither bill has been heard to date. Community Investment Program: HB 33 (Rodgers) and SB 240 (Soto) would establish an investment program within the Department Of Economic Opportunity. The program will focus investment to reduce poverty in economically disadvantaged communities. Neither bill has been heard to date. Government Meetings / Licenses to Carry Concealed Weapons or Firearms: HB 4031 (Steube) is among several bills addressing guns this session. This specific bill though, would delete the prohibition on concealed carry licensees from openly carrying handgun or carrying a concealed weapon or firearm into any meeting of the governing body of a county, public school district, municipality, or special district, any meeting or committee meeting of the Legislature, and in any career center. Effective Date: July 1, 2016. This bill has not been heard to date.